The Statement of the National Bank of Georgia
06 November, 2018
The floating exchange rate regime, which is currently employed in Georgia, is characterized by short-term fluctuations on the FX market. Based on the information available to us, recent exchange rate fluctuations are unrelated to economic fundamentals; the current exchange rate dynamic is negatively affected by the environment surrounding presidential elections, which is reflected in the FX market. The National Bank strongly encourages public figures and experts to abstain from ungrounded statements and forecasts about the exchange rate dynamics to avoid the emergence of the misleading expectations.
Thus, US dollar is currently overvalued vs Lari and as a result the National Bank advises general public and economic agents not to take hasty decisions, which are likely to hurt them.
The above once again confirms the previous statements of the National Bank recommending the public to take loans in the same currency as their income to avoid the FX risks.
We would like to remind you that the goal of the National Bank is to maintain the price stability in the medium term. Hence, the NBG will use all the instruments at its disposal to avoid high inflation.
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